- Acting SEC Chair Mark Uyeda has instructed a review of crypto-related regulations, including Bitcoin futures and market disclosure.
- The review seeks to remove rules hindering crypto innovation, potentially leading to more favorable regulations.
- The SEC clarified that stablecoins like USDT and USDC are not securities and must maintain separate operational and reserve funds.
Mark Uyeda, as acting SEC chair, ordered staff on April 5, 2025, to reassess multiple crypto-related rules, particularly the SEC’s decision about crypto investments and Bitcoin futures investing standards.
This review includes both instructions about market disclosure letters and guidance on digital asset securities oversight as well as Wyoming’s no-action letter and its related custody standards. The SEC announced its determination to reassess crypto-specific rules and administration statements based on current priorities through a message on X on April 5.
Under Executive Order number 14192, President Trump ordered the review on January 31, 2025, to support economic development. Under Executive Order 14192, the US government expects its agencies to remove rules that block new business development. Under Executive Order 14192, President Trump gave way to significant change by replacing his former “2-for-1” policy with a new mandate that every new rule must be accompanied by the removal of ten existing rules.
SEC Reassesses Crypto Regulations
Acting Chair Uyeda explains that their review looks for rules that limit crypto development and do not support economic growth or innovation. Whether crypto enterprises experience easier and clearer regulations depends on this evaluation process, which may result in more freedom for these businesses.
Through its statement review process, the SEC wants to uphold its digital asset market support efforts. Our evaluation aims to find rules for digital assets that should be changed according to the new goals and directions of the agency. The Securities and Exchange Commission wants to analyze crypto rules now that the commission supports digital assets under this government administration instead of earlier ones.
The SEC chose to drop its active court proceedings against notable cryptocurrency companies, including Coinbase, Consensys, and Kraken. Under the second Trump administration, the SEC is following a new direction, which will continue to impact their actions in the digital assets market.
SEC Moves to Distinguish Stablecoin Assets
The SEC conducted a review along with providing guidance on crypto asset regulatory classification in this market. On April 4, the commission announced that stablecoins USDT from Tether and USDC from Circle do not qualify as securities. Through SEC guidelines, these stablecoins linked to liquid reserves no longer need transaction reporting, making them distinguishable from other crypto assets.
According to SEC rules, stablecoins maintained by automatic systems do not qualify as exempt assets. Under these guidelines, covered stablecoin issuers must keep separate operational and reserve funds and cannot pay yield to token buyers.
The SEC’s pro-innovation approach may expand under Paul Atkins as he becomes confirmed as SEC chair. On April 5 the Senate Banking Committee gave its approval to Paul Atkins as chairperson of the Securities and Exchange Commission, with the full Senate vote upcoming. Under Atkins’ SEC leadership, crypto-related exchange-traded fund applications will become easier to approve.
